Federal Government demands Qld guarantees tenancy advice funding

Mr Butler says he will have to reassess other funding deals if the Queensland Government will not guarantee its future.

ABC News - file image

Federal Housing Minister Mark Butler is threatening to withhold funding from the state as part of a dispute over the Queensland Tenant Advice and Advocacy Service (QTAAS).

Last year, the Queensland Government scrapped funding, forcing the Commonwealth to step in to keep the service running until the end of June.

Mr Butler says he will provide a further $2.5 million to keep QTAAS running for six months, if the State Government agrees to a long-term solution.

He says he wrote to Queensland Premier Campbell Newman earlier this week but is yet to get a response.

Mr Butler says he will have to reassess other funding deals if the Queensland Government will not guarantee its future.

"I've also made it clear to the Newman Government though that we reserve the right - if they don't do this - not only to withhold the $2.5 million, but to review other arrangements we have with the Newman Government in the housing area, to ensure that really they look at this again with some common sense," he said.

"We all know that good independent advice and advocacy can be the difference between someone being able to keep their tenancy or a roof over their heads and being homeless.

"This is a service that every other state government delivers across Australia and a service that was recognised recently by all ministers as a core state government service."

'Playing politics'

However, the State Government says its federal counterpart is playing politics by threatening to withhold funding.

Queensland Housing Minister Tim Mander says he has not changed his position and threatening funding will only put vulnerable people at risk.

"I don't know what [Mr Butler's] trying to do - he's obviously trying to play political games with those that are the most vulnerable in the community," Mr Mander said.

"I am hoping, as most Australians are, that in a couple of months time we won't have to worry about Mr Butler."

Mr Mander says he is disappointed with the Federal Government.

"We've had actually no formal conversation with the Federal Government at all about this," he said.

"The only way that we have heard about it is through the media, which is totally inappropriate.

"But we have said that we will not be continuing the [QTAAS] as they have been in the past, because that is a duplication of services that are already available."

'Extremely disappointing'

Meanwhile, Tenants Union of Queensland spokeswoman Penny Carr says she is frustrated the issue seems to have become a political football.

"It would be unbelievable and extremely disappointing if the State Government didn't take up this offer," she said.

"They've go an opportunity to continue delivering services in the regions.

"The regions will miss out after 30 June if they don't provide funding or don't come to this agreement with the Commonwealth."